>> greg: that is it for us on fiv "the five." thanks for watching. see you tomorrow. captioned by closed captioning services, inc >> bret: republicans prepare to vote on plan "b." a dual track in negotiations fall apart. so far, it seems heading that way. so what now? this is "special report." ♪ ♪ >> bret: good evening. i'm bret baier. with the fiscal cliff looming, president obama and barack obama; obama and house speaker boehner i should say continue to fight tooth and nail over how best to avert the automattic tax hikes and spending cuts that would go in effect, exactly two weeks from tonight. we have team fox coverage tonight with chief political

correspondent carl cameron on capitol hill, where the house is set to vote on what speaker boehner calls a plan "b." but we start and you have may have seen him with the chief washington correspondent ed henry where obama insists he moved more than halfway to meet boehner. >> megyn: the democrats have given a lot to boehner and they are not ready to give more. top advisor telling me the white house believes the negotiation took a step back today. speaker boehner said it's time for a backup plan. >> our plan "b" is protect taxpayers making $1 million or less and have current rates extended. >> there there is little chance of passible in the senate. the democrats say if goalposts is getting moved. >> take the football and charlie brown episode. they jerk it away.

>> 15 months ago the president suggested threshold on tax hikes might be a $1 million. >> middle class families shouldn't pay higher taxes than millionaire and billionaires. today they said it did not preclude raising rates with broader reform. >> the idea to tax people making more than $1 million is so bad and unbalanced why did the president propose it in 2007? >> millionaire tax in rose garden? >> first, >> that is a different propoise sal. he supported exploration of bush tax cut for those making more than $250,000. >> private talks, president moved the threshold to $400,000 or more. is republicans noted 5653 senate democrats voted for a

plan by schumer that sounds similar to boehner. >> senator schumer said first i don't know a single one of my colleagues who would about prefer tax breaks ifer people up to $1 million. >> boehner has bigger proble problems. he has a bill for tax cuts for anyone making $250,000 or less. that could help avoid the cliff, since the senate already approved it. conservatives are likely to block it. >> our job is keep it as low as possible now. get 99% of americans not have a tax increase. that is goal. >> reporter: meaning with the clock ticking the democrats think they have boehner boxed in. >> we don't know details of plan "a" or "b" or whatever plan "c" might be. but we remain united behind our president. >> this is what plan "c" might

look like. they can see scenario that president makes one more concession, that threshold could be $500,000 for the tax increases. boehner may not take it. it doesn't include major spending cuts or increase in the debt ceiling. so this leaves a lot on the table either way. >> bret: thank you. what is next in back and forth? check in now with the chief political correspondent carl cameron from capitol hill. good evening. ed mentioned that speaker boehner put increased tax revenue on the table, some conservatives were fearing it's revenue from closing tax loophole and deduction. now it's tax increase. increasing rates for millionaires. what are you hearing there? >> house republicans have a closed door meeting with the leadership right now on the house side. we talked to some members who have gone in and out. a combination of consternation and frustration. and mystification. they don't know what is going

to happen. just finding out the details. that is right now. tomorrow there will be a protest outside the capital of outside groups that think that the republicans are giving in too much. it will be called the hold the line rally. urging against anything that would counter the rate increase. and revenue increases are on the table. mr. boehner has problems with the caucus. most of the members are quiet. outside groups have been harsh. club for growth and hair tage foundation are behind this to say that the speaker is out of line. but to this point he has had the benefit of his leadership holding with him. the majority leader eric cantor, whip, mccarthy and ryan behind him. that kept the republican conference together. it could fray depending on how the vote goes. >> bret: speaker boehner used the dual trap before, with the debt ceiling and how he orchestrated that negotiation back then. if the house goes ahead with

the votes on thursday, carl, boehner's plan "b" could become a multiple choice. >> you heard what ed whenly was talking about there. first the vote on the plan. they anticipate an hope it will be defeated easily with the republican majority. the plan "b" is that million-dollar threshold, open question. there are republicans who have issues with it. and part of the consternation they express is when the president offered $400,000, why would mr. boehner take so it far out of what has been narrowing negotiating process? could it blow up on him? this is the thing that if mr. boehner doesn't play it right, there are threats to his speakership. because of the nature of how the republican congress is balanced he could louis eight votes for election of speaker he wouldn't be it for the next upcoming session. >> more on this with the panel. we are talking taxes here but it comes down to spending as

well. capitol hill continues to wrestle with the white house. over what to cut, and where. and how much, you have to understand that this back and forth is really tiny. when you look at the fiscal hole the nation is facing. have you wondered how much of the national debt you and your family owe? we take a look at staggering numbers tonight in part two of the series "the cost of spending." >> the national debt clock, spinning faster ever year. we have all seen it before. >> did you see that clock up there? $16 trillion of debt. >> used as prop at campaign events. >> when the come pain began it was less than that. >> you can walk by the main debt clock in new york city. west 44th street and avenue of the americas. but when you really stop and look at it for a while, maybe even stare at it, frankly, it's scary. as of today, every household in the united states owes

$140,000 of debt. every single household. the u.s. borrowed roughly $6 billion every day. the country is borrowing $239 billion each hour. that is $4 billion every minute. in the time that this started, u.s. has already borrowed another $4 million. for every dollar they brought in, it spent $200.06. it runs a deficit. deficit is a one-year shortfall that has to be made up by borrowing. the national debt total accumulated debt is the sum of all the annual deficits. less any surplus. it's the running count. we hear politicians talk about deficits and the debt all the time.

>> the debt. >> deficit. >> debt. >> deficit. >> bret: how to get politicians to come to some agreement to get the debt clock slow down or tick back the other way continues to be the challenge. but first, where we have been. >> take a look at the debt through history. the amount we owe ebbed and flowed. over country of spending more than it takes in, is nothing new. 1835 saw the lowest recorded debt at $34,000 under president andrew jackson. unsuccessful assassination attempt on him that year. 1865, president that did perish from such an attack, president lincoln oversaw a debt of $3 billion. >> black tuesday, the most devastated stock market crash in history of the united states, it rose to $17 billion then. then came world war ii.

expensive one. by "d" day in 1945, the debt ballooned to $259 billion. quart ore of a trillion dollars. more recent times. the 2008 financial crisis. the amount of our debt our country held crossed the $10 trillion figure for the first time. it has continued to rise. which leads us to where we are now. more than $16 trillion in the hole and counting. economists robert ginetsky author of classical economic nation believes history shows when they spend increasing faster than the overall economy, the private sector and economy overall serves. >> 1945-1947, there was a huge cut in government spenning because of winding down from world war ii. the people who thought the government spending was holding the economy up were all predicting a major depression. at that time. what happened was for the

first time in 15, 16 years, a huge increase in private spending on goods and services per person. 25% increase in two years. what was happening is there was a substitute with the government spending on down. more money and resources, for private spending to go up. that is the real recovery. the recovery wasn't world war ii. when fighting for our survival and spending money to a assure the survival. >> many people rail about the government does too much. they weather saying the government hasn't done enough. we haven't been specific about this. it's not discretionary spending but this coming

tsunami of older people we have to cope with. does it have to grow that fast? i don't think it does. >> stanford economist and author of "first principles: five keys to restoring america's prosperity" said because of interest time is running out to deal with the debt and deficit. >> so much that debt suspect so large it's suspicious to pay it back. >> mortgage debt you pay interest on it. right now interest rates are relatively low. but they are bound to go up in the future. so that will make the interest payments much higher. if we don't correct this problem, interests will the end to dominate our spending greater than defense.

>> we have a history to guide us. the debt gets too high and people are skeptical of len lending. then we have a crisis. it's dangerous when you get too high and moving close to the dangerous level every day. >> tomorrow the series how washington cuts spending. and later in the week, how the federal reserve factors in to the this. stocks were up today. dow added 115. the s&p picked up 16. nasdaq finished ahead 44. want to own a piece of presidential history? we tell you how in the grapevine. up next, students head back to classroom in newtown, connecticut. new demands for gun control legislation emerge in washington. i always wait until the last minute.

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>> bret: students return to classes today. they were sent to middle school in neighboring town. two more funerals held for children killed in that attac attack. some lawmakers suggest the president take the lead on the issue. at the least push for reinstating the assault weapons been a. now the nra has weighed in. chief washington correspondent james rosen has the story. >> challenging days ahead for newtown, connecticut. >> the national rifle association sought to counter the massive coordinated campaign for new laws by gun control lobby. >> you have bloomberg and

schumer and feinstein insisting we need tougher gun laws. you look at connecticut are number five with the strictest gun laws in the country. >> sources tell fox news the nra having observed a proper mourning period will begin to push back against gun control advocates. widening the discussion to include hollywood and gaming industry. and pitting defenders of the first amendment against the defenders of the second. late today, the nra made a move to announce a major news conference friday and saying the 4 million members, male and female prepared to offer meaningful contributions to make sure it never happens. again went on the record with the measures that president obama fights for. >> he is supportive of senator feinstein's stated intent to revive, a piece of legislation to reinstate the assault

weapon been a. he supports legislation to address the problem of the gun show loophole. people talk about the high capacity ammunition clips for example. that is something that he would be interested in looking at. >> senator joe manchin the gun friendly democrat from west virginia re-elected last month spoke by phone with the president today. afterwards, urged his nra friends to not to vilify those talking to the other side. same time, the democratic senator claire mccaskill of missouri. one of the top ten states for gun ownership background check struck a confrontationm posture. >> everyone walks around here, too many, worried about the nra score. they score, they scored whether or not the attorney general was held in content. two words for the nra. score this. >> senior obama advisor david axelrod blasted out e-mail to campaign supporters yesterday that linked them to a video of the president eulogy from the

new township victim at two places alongside the video box. visitors were encouraged to donate money. one asking for $5. >> bret: see how that gets reaction all over. james, thank you. republican governor rick snyder vetoed legislation to allow concealed weapons in churches, schools and daycare centers. he said the public venue need clear legal authority to been a the firearms. "if they see fit to do so." still ahead, imagine five days in syrian captivity. the foreign correspondent lived through it. lawmakers await benghazi review. [ whistle blows ]

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>> bret: checking international headlines now. in mexico, a new twist in the fight of marine veteran john hammer who has been in a mexican prison for four months on what many call a trumped up federal weapons charge. his family received a new photo of him chained to a bed. in his prison cell. from anonymous e-mail. the first photo taken since he was locked up for trying to declare an antique gun at the border. hammer is set to appear in court on january 17. we are following this story. the state department has begun to implement recommendations to improve security at u.s. diplomatic missions. move called for by an independent panel set up to investigate the september 11 attack in benghazi, libya, that killed a u.s. ambassador and three other americans. catherine herridge has more.

>> classified report arrived in the last minutes. they are waiting for the finding to be briefed tomorrow is classified hearings for the house and senate foreign relations committee. in addition to working on syria and north korea, aides to secretary clinton say she is drafting a letter in response to findings made available to lawmakers before the hearings tomorrow. unclassified version of the report could be released as early as tonight. once again, briefing, the state department tried to explain why clinton is not testifying this week about the benghazi terrorist attack, which killed four americans including her ambassador. today, the state department officials fielded more questions will the secretary well known for her work ethic dodging uncomfortable testimony. >> completely untrue. we have been very clear from the beginning that she had a stomach virus. ugly stomach virus. she got very dehydrated, fainted. later discovered.

>> public hearings thursday, deputies will testify in her place. the testimony would be what clinton would say. >> remind that they are standing in for her. so the testimony on thursday would reflect her view and how to do forward from the report. how to learn its lessons. >> not having seen the final report, which also investigates the military response to benghazi, defense secretary panetta said a terrorist assault. no question extremists were involved in the attack. we learned a lot and will continue to from the incident.

>> the administration blamed the film for inciting the violence. >> more on this with the panel. >> should you tell the truth at a traffic stop? is the world in the final days? well, that depends on who you ask. grapevine is next. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase.

>> bret: now fresh pickings from the political grapevine, some doomsdayers point to mayan calendar, we only have a

little less than three days until the end of the world. chinese villager trying to make a profit built his version of noah's ark, tsunami proof survival pods, for people trying to make it through the apocalypse. they're fiber glass over a steel frame, equipped with the oxygen tank, food, water and seat belts. they are designed for 14 people. but 30 can survive inside for two months. theyco $40,000 a piece. the average salary for the province of china is under $6,000. so far no, buyers. of course nasa is not buying a pod or the apocalypse, itself. the is so confident that the world will not end friday, it released a debunking video early. it was intended to play on

december 22. another group not taking the end of the world precautions are the mayans themselves. daily life continues as mayan population. they said the world will end but we don't know when it will end. piece of history could be yours if the price is right. president bush offering off the f-150 pickup truck used on his ranch in texas after his presidency, during the presidency. the proceeds benefiting the fisher house foundation, to assist the military families. good news about a traffic ticket. when do you hear that?

carlo poz owled over in -- was pulled over in north texas he told the officer he had no excuse other than he couldn't afford the ticket. the officer left him with a citation, warning and $100 bill. he told the local police station he helped me out when i needed it and i appreciate that. i'll never forget that man. he used the money pay for his and his wife's car registrations. goods news. in egyptians, thousands of protesters marched in the square to protest draft constitution. a crew escaped captivity from the syrian gunman. correspondent leland vittert has a piddle east roundup. >> once the hunted, syrian outgunned rebels are becoming the hunter.

they appear to have more organization. fighters are better armed thanks to qatar and advancing on me mass cuss. -- massacre. evidenced by the kidnapping of the chief correspondent richard angele in what he thought was rebel territory. a newly freed crew arrived in turkey to tell a story of the mock execution a the psychological torture before an escape for a firefight. >> the last five days, are days we would rather forget. >> angle and crew had been in the town of aleppo where a street to street battle continues for control.

proving that even a successionful revolution doesn't solve a country's problem, syrians would only need to look toward egypt, where a draft constitution has sparked renewed violence. protests between liberals and those who support president morsi, member of brotherhood. unofficial results showing leaning toward islamists. like all, there are charges of rampant fraud. today, there was resignation to complicate thing for saturday when they go to ballot box for the vote on the constitution. the arab spring are far from over. >> in the middle east, talibani suffered a stroke and we're told he has slipped in to a coma.

president's medical team is stabilizing the condition. has not decided whether or not talabani will continue to be treated in baghdad or thrown to another country for treatment. >> the white house rejected boehner plan "b." what now? what is next for the fiscal cliff? we ask the panel after the break. ♪

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possible. moving down that path is the right course of action for us. >> plan "b." house republicans are expected to vote on this, on thursday. it would essentially keep taxes the same for everyone below $1 million. there are some republicans who have a problem with the tactic already. some of them are weighing in. >> once you cross that line, some people, some people -- [ inaudible ] i think a lot of members are struggling with it. >> bret: some republicans are not happy with it. the white house turned it down. but negotiations are continuing. so where are we? bring in the panel. tucker carlson, editor of the dailycaller.com. a.b. stoddard associate editor of the hill. and sindcated columnist charles krauthammer. 14 days from tonight. by the way. >> start of the day i was feeling optimistic in a way i

have not. it surprised me but it seems that things are moving quickly. things are moving on both sides. the white house saying this is not the final offer. but by the end of the today it's clear that the republicans-meeting with the leadership this morning after getting back in town, really want what they are calling verifiable spending cuts. they want more on the spending side. they know what boehner offers in revenue, a lot. shocking amount. to anyone either side. if you thought about this a couple of months ago. but they want real entitlement reform. they want not provider cuts, which are never followed through by congress. they want verifiable cuts. what you hear from republicans is we heard this before. we promise spending cuts that don't come through. they don't want an amount to replace the sequester. they want amount on top of the sequester and new cuts to replace sequester. not what the white house is

offering. >> bret: the white house is not offering. they are saying they are willing to go on the tax cuts up to $400,000 from $250,000. being the cap. up to $400,000. but on a spending cut side, from what we hear, we haven't heard anything new. >> on the revenue side, the sides are close. my reading of it. republicans concedeed they will be for raising taxes. you could find hilarious tape somewhere of chuck schumer and barbara boxer, both arguing that people who make $250,000 are not rich. so basically, the house republicans have taken the democratic plan on revenue. on spending, however, there is a new definition. white house today attacked house republicans for not cutting and obama has no intention of and no plan to significantly reduce the growth of government or reign in, entitlement at all. republicans know. that by the way, look at

details of the obama plan. a lot of "savings" are projected reduction in interest on the national debt. that is not real. that is phony. they haven't moved an inch. >> bret: to your point about the democrats and what they said before, senator mcconnell mentioned that the plan "b" came out about the million dollars and up. and he talked about it on the floor today. in the summer of 2010, senator schumer said, "first, i don't know a single one of my colleagues who wouldn't prefer to do tax breaks for people up to $1 million. that is my understanding that that is essentially the proposal that the house of representatives sent over to us later in the week. >> bret: harry reid saying it has no chance in the senate, charles. so again, back and forth and republicans look for escape hatch so they have a way out to kind of politically be

protected to say hey, listen we pass this. and it includes tax increase even on millionaires. >> boehner has given so much on the taxation. he is really at risk of going overboard. unless he has serious stuff on spenning. they got swindled on spending. he said, in fact, reagan said he cut a deal where he raised the taxes. he was promised $3 a spending cut for every dollar of taxes raised. he got nothing. he said it was the biggest political regret he had. this is the football and charlie brown all over again. boehner probably made a mistake caving on rates. but that is done. if he were to start all over, he probably would haven't or should have. but they gaveed on rate.

this plan "b," republicans in the house will raise taxes over $1 million. we know that is what the democrats and schumer proposed and utter hypocrisy. the speaker's plan could be approached and it doesn't meet the test of protecting the middle class. think about how it yotic that is. that protects the middle class and everybody up to $1 million. but he says it can't protect the middle class because the democrats will reject it, so not enable it to protect the middle class. this isn't enough. if you have to say stuff like that. >> the senate would shoot it down for politics. but it would protect middle

class because the taxes wouldn't get raised and it would be raised on those making -- >> over $1 million. but the argument is it's not going to help the middle class, because we'll kill it before it helps the middle class. >> bret: so doesn't that, if the republicans then vote this through, doesn't that put onus on the white house? >> yes. they will put the democrats on the defensive. >> can boehner get 218 votes on -- >> that is what today is about. they hope to do it by thursday. democrats say they won't help him. this is an attempt to say we didn't wantbe to go over the cliff. help the middle class. not going to give entitlement. big fight for january and put onus on the president. >> can conservatives say okay, well- >> keep in mind, this is not just income.

capital gain and dividends snore but can he convince them have the battle in the new year, use the debt ceiling as leverage and spending cut. >> replacing the committee chairman is a sign that he has pretty good control of the caucus i say. on the other hand, every time you go up the hill you hear grousing about the speaker. bitter grousing from conservatives. >> given a deal where obama offers nothing on spending or plan "b" where you pass tax increase for $1 million, you have to go to plan "b." much smart every option. plan "a" is absurd. >> bret: three choices down the row. deal, plan "b" or over the cliff? >> over the cliff. >> i think it's likely plan "b." small hope for plan "a." >> if you think the federal government consumes large proportion of gdp you are over the cliff. >> bret: what are you predicting?

>> oh, what am i -- sorry. what am i predicting? i think there is a deal. both sides have interest to reach is and they will. >> next up, benghazi report up on capitol hill now and hearings will be held without secretary clinton. panel weighs in on that next. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees, like ourender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99. [ coughs ] [ baby crying ] ♪ [ male announcer ] robitussin® liquid formula soothes your throat on contact and the active ingredient relieves your cough. robitussin®. don't suffer the coughequences™.

>> we have been very clear from the beginning that she had a stomach virus, ugly stomach virus, she got very dehydrated, she painted. later discovered he is had con suggestion. she working at home this week. on the mend, going to be fine. she is working from home. she got the arb report

yesterday and read through it yesterday. working on the letter to go with it to the hill. on the phone and e-mail contact with senior staff. >> bret: secretary clinton reviewing the arb report, the independent panel report on the benghazi, libya, attack up on capitol hill right now. ahead of classified hearings this week. two deputy secretaries will testify in her stead after that virus and concussion talked about at the state department this week. you can see the deputy secretary burns. we're back with the panel. what about this? the whole issue? charles? >> former u.n. ambassador john bolton calls this a diplomatic illness. we heard from victoria noonan it's a bad bug. benghazi allergy. she has a ve veer benghazi allergy.

five days after the attack she was not there to address the american people and she sent out someone whom the president himself had no idea was not involved at all in benghazi. now that she is supposed to speak to the congress about this. she has illness. i'm not going to say she doesn't have one. be happy to give her neurological exam, and absence of that i take her word. but there is something strange about this. she did say ostentatiously, i take full responsibility for the attack in benghazi. she said that during the campaign, which is completely and utterly meaningless. what does that mean? in britain, invasion of falkens, the former secretary resigned over it, though it wasn't his fault. as a matter of principle. if it happens on your watch, you resign. that isn't going to happen in her case, but she won't even speak about it, which ought to be the minimal requirement. that is incumbent on her to

do. >> bret: a.b., they have saying she is open to testifying. scheduling issue now. once you get in january, you are in to a new congress. and what about that possibility? >> she won't be -- >> bret: she won't be secretary of state. >> right. there are people of accusing her of lying to say this is a fake concussion. i think it would be really hard to fake a concussion and have it actually be leaked to the press somehow that the whole story was con octobe conc. that would be quite brazen. but she has been conspicuously absent from any situation since september 11 where she would have to talk about it. absent. she did make a comment about susan rice but absent defending her, absent from giving an "of what happened -- giving an account of what happened with the exception that she wanted to make a statement of being fully accountable. she is examining the prospect

for future. she is considered the front runner 2016 in both parties. ahead of even the republican prospects in the next presidential cycle. any testimony is tough experience. putting it off until january will soften the blow. she has to do it. i'm not saying she is lying but it's awkward. >> bret: this report will give us some stir. it's a classified hearing. >> it comes out tomorrow. keep in mind, i'm not in a position and i can't assess her current condition. but in september you will remember, if you went to look back at the wording she said she couldn't speak of benghazi because she had a grueling week. it does strain credulity. this is about the administration policy toward the arab and islamic world this which has seen in four years the resurgence of the islamic activity in key big countries.

egiant, syria, lib yeah. i am not suggesting that the white house is responsible for that but i am subjecting a smart person could ask penetrating questions of the efect of the policy, none of which born fruit to help us. she doesn't want to deal with that. at some point, she should have to. the left says susan rice thing was a sideshow. they are kind of right. she is the secretary of state. she is responsible. >> bret: that is it for the panel but stay tuned to see an effort at handling touchy questions. this holiday, share everything.

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>> finally, the justice department said today will not charge david petraeus' mistress in its investigation that led to the resignation of the c.i.a. director and another former c.i.a. director happened to be at the national press club today. >> as the former head of the c.i.a., please explain why general petraeus was forced to resign rather than a lesser punishment. [ laughter ] >> you got to be kidding me. [ laughter ] you got to be kidding